Cattle manure is an input often used in making fertilizer. Suppose a technique is discovered that can transform cattle manure into quality gasoline. What would happen in the fertilizer industry?
This alternative use for manure would cause its price to rise. If fertilizer companies could not find good substitutes for this manure, the price of fertilizer would rise. If good substitutes were available (for example, chicken manure), substitution in production would occur, reducing the magnitude of the fertilizer price increase.
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The larger is the marginal propensity to consume (MPC)
A) the larger is the multiplier. B) the smaller is the multiplier. C) the smaller is the slope of the consumption function. D) the larger is the slope of the saving function.
Markets work well for allocating ________ efficiently, but not always so well for allocating ________.
A. common resources; public goods B. public goods; common resources C. public goods; private goods D. private goods; public goods
The costs that we avoid by not eliminating pollution while being able to enjoy the goods that create the pollution are the social benefits of pollution.
Answer the following statement true (T) or false (F)
Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5? Explain why
What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?